Chafee Urges Raimondo to Seek Guidance Before Implementing Voluntary Retirement Initiative

Chafee Urges Raimondo to Seek Guidance Before Implementing Voluntary Retirement Initiative

Former Governor Lincoln Chafee has issued a statement raising concerns about sitting Governor Gina Raimondo's planned "Voluntary Retirement Initiative." The Chafee comments come across a backdrop that Chafee could challenge Raimondo in the 2018 Democratic primary.

Chafee's Statement:

Yesterday Gov. Raimondo released the guidelines for a voluntary retirement initiative. The 2011 Retirement Security Act, which I signed, suspended our retirees’ cost of living adjustments until the pension fund reached a “funded ratio” of 80 percent.

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I am concerned that the voluntary retirement initiative will adversely effect reaching the 80 percent goal and thus further delaying the COLAs.

In 2015 a Settlement Agreement was enacted which ended legal challenges to the 2011 pension law. The Settlement Agreement is also a law and it addresses “judgment violations” in Section 5(b). The law sets out a process for any “breach” of “covenants”.

I urge Gov. Raimondo to ascertain whether her early retirement plan jeopardizes the timely return of our retirees’ COLAs. The Settlement Agreement also prescribes possible penalties for breaches of covenants.

Lincoln D. Chafee